Germany Property News

German hotel investment up 155pc

Investment in the German hotel sector increased 155 per cent in the first quarter of 2013 compared to last year, Savills has revealed.

The figures follow several reports confirming German’s attractiveness to overseas investors. The appeal of Europe's most populous country was echoed in Ernst & Young's latest survey, which saw Germany ranked as the continent's most desirable market by 38% of investors, ahead of both France and the UK.

The economically strong country also took top spot in the 2013 Country Ratings Poll for the BBC World Service, which found that 59% rated Germany's influence on the world as positive, three points higher than 2012.

And indeed if foreign direct investment levels are an indication of investor confidence, then Germany presents a good bet with 624 FDI projects making it one of Europe's top destinations (along with the UK).

Ray Withers, CEO of multi award-winning investment agency,Property Frontiers,comments: "It's all too easy to view Europe as a whole and assume that the economic crisis has affected each nation equally. It is simply not the case. Whilst the PIGS (Portugal, Italy, Greece and Spain), France and number of other eastern European countries have entered recession, tough austerity measures by Chancellor Merkel have resulted low unemployment and robust growth, continuing to make Germany an attractive investment destination."

The property market in particular is receiving high levels of investor interest with the CEO of Savills Germany, Marcus Lemli, stating that "Germany is currently the target of choice by many international investors...accounting for half of transaction volume last year."

And, of course, there is that 155% increase in German hotel investment in Q1 2013 compared to Q1 2012.

Ray Withers continues: "As an asset class, hotel room investment had previously been solely within the realms of institutional investors and funds but now we have structured an opportunity for individuals to own a hotel room and enjoy the high returns available.

"Our exclusive luxury 4* operational hotel room investment opportunity, AlpenClub, capitalises on the massive demand for accommodation in Bavaria, the most popular tourism destination in Germany. The initial allocation sold out within 18 days of launch and now due to client demand, a further allocation of 20 spacious rooms from £47,198 is now available offering a 10 year fixed return leaseback and assured NET yield averaging 10.33%."